Govt approves RM30mil fund for TAR UC but MCA must relinquish control, says Guan Eng

PETALING JAYA: The government has approved an allocation of at least RM30mil annually to a trust fund for Tunku Abdul Rahman University College (TAR UC) and its students, provided that MCA relinquishes control of the university college.

Finance Minister Lim Guan Eng said the RM30mil, which will be provided annually and disbursed by this year, will be allocated to a trust fund managed by the Tunku Abdul Rahman Alumni Association (TAA).

"It is proposed that the 'Trust Fund Government Matching Grant' be established by the TAA immediately," he said in a statement on Friday (Nov 22).

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He added that the trust fund will comprise the TAA, TAR UC student representative, and a Finance Ministry representative.

"The terms of reference of the trust fund is for it to be managed for the benefit of TAR UC as an education institution and its students," he said.

Lim noted that the trust fund will manage the RM30mil annual fund without the involvement or the intervention of the government or any political party including MCA or Pakatan Harapan.

"Before this, the government made a condition that there should be no political elements in its ownership or in the administration of TAR UC for it to continue to receive the matching grant by the government of at least RM30mil per year.

"This condition is to respect the principle that public funding should not be given to business organisations, mass media, non-governmental organisations, and education institutions that are governed by a political party," he said.

Lim added that such conditions are observed around the world to prevent "corruption, abuse of power and conflict of interest".

He said that such a decision was taken following accusations questioning the government's sincerity in providing at least RM30mil per year to TAR UC.

"The RM30mil will be paid by 2019 the moment the trust fund is set up and the RM30mil will also be paid next year.

"The allocation of the funds to the trust fund of TAR UC can still take place subject to the condition that the MCA leadership relinquish its ownership, administrative, and its membership in the Board of Trustees as well as Board of Governors," he said.